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Small Business Assistance

Small Business Tax Concessions

Small business entity concessions include a reduced company tax rate and PAYG instalment concessions.

Small businesses can access a range of concessions including payment and reporting options. This applies to sole traders, partnerships, companies or trusts.

To qualify for these concessions, you’ll need to determine if your business is a ‘small business entity’ for the income year. You must review your eligibility each year.

    PAYG instalment concession

    As a small business, you have the option to pay as you go (PAYG) by instalments using an amount we work out for you. This can save you time working out the amount you need to pay, and if required you can vary this amount each quarter.

    We calculate instalment amounts from information you’ve previously reported and adjust it accounting for likely growth in your business and/or investment income.

    If you’re eligible, the amount will appear under option 1 on your activity statement or instalment notice. To choose this option, complete the details under option 1 on your first activity statement or instalment notice. Once chosen, that option applies for the whole income year.

    The turnover threshold for this concession is:

    • $10 million from 1 July 2016
    • $2 million up to 30 June 2016.


    To work out if you are eligible for small business entity concessions, you first need to work out if you are a ‘small business entity’ in an income year. You must review your eligibility each year to check if you are able or required to use a particular concession.

    From 1 July 2016, you are a small business entity if you are a sole trader, partnership, company or trust that:

        • operates a business for all or part of the income year, and
        • has an aggregated turnover less than $10 million (the turnoverthreshold).
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